Google's Eric Schmidt resigns from Apple board over 'conflict of interest'
By Joshua Topolsky 
posted Aug 3rd 2009 9:03AM
posted Aug 3rd 2009 9:03AM
The truth is, it's been a tangled web for some time as far as the relationship between Apple and Google goes. Sure, Schmidt sat on the board, the companies claim to be working on new projects, and Google Maps comes preloaded onto the iPhone, but over the past year, Google's increasing move into Apple's space, and Apple's increasing desire to control every inch of that space have not been good bedfellows. It's hard to imagine that Apple could maintain a completely healthy relationship with a direct competitor in both the phone and OS space for very long, and that's to say nothing of Cupertino's latest push into online document editing and management, which couldn't have seemed very awesome to Schmidt and company. Oh, and there's that matter of the antitrust case which is currently ongoing. Still, it's a bit sad to see this power couple going their separate ways, though it does give us some hope that Google will begin a full assault with Android in earnest, because only sweet stuff could come from those efforts. If you're interested, the full PR is after the break.
Update: The FTC says it's going to continue investigating the two companies for "remaining interlocking directorates," so Apple and Google aren't totally out of the woods, but we don't think anything else major is in store here.
Dr. Eric Schmidt Resigns from Apple's Board of Directors
CUPERTINO, California-August 3, 2009-Apple today announced that Dr. Eric Schmidt, chief executive officer of Google, is resigning from Apple's Board of Directors, a position he has held since August 2006.
"Eric has been an excellent Board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful," said Steve Jobs, Apple's CEO. "Unfortunately, as Google enters more of Apple's core businesses, with Android and now Chrome OS, Eric's effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest. Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple's Board."
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.
OMG, I for one am happy to know this - can't stand goog
Right on, free services are for loosers, I'm donating 1$ to Apple for every email I send. Grow up Google and get with the program.
Yeah! Down with excellent up-time, availability and speed!
@ Paul
so who to believe, you with one .png image labeled 'att-evil' or a respected iPhone developer who said Apple asked him to provide refunds to those who bought the app? And we're not criticizing Apple at every turn, I think the iPhone is a pretty good product. However their app store policies are kept a closely guarded secret if they even have any, because with some apps it seems unlikely that they have any rules whatsoever except 'It can't compete with us or AT&T'. And why are they even allowed to remove apps because they compete with Apple/AT&T? I would've hoped that they would have got slapped down for that the first time it happened. But competition is GOOD for consumers, and Apple/AT&T aren't providing a competitive platform by rejecting any app they suddenly decide they don't like.
Conflict of Interest = Google Chrome OS & Apple Tablet?
To say the FTC was investigating to see if there was reduced competition because the guy was there... Clearly the reduction in competition was Apple's goal, not Schmidt's.
Yeah, Google provides services because they care about you, not because they want to leverage their monopoly of the way people access information on the internet into advertising and click-through revenue.
tools.
Its not about free services, its about being Google's slave when they own every inch of the web. Not in a, I-live-in-the-woods-now-because-I-can't-handle-the-"man" kind of way... its just that when let them have everything, there's not going to be anything to encourage it to be better. They won't have to innovate as much because they know you'll be ready to just slop up their new whatever. That kind of complacency lives in a place called Redmond currently.
Furthermore, free = no accountability. Imagine a 'call' to customer service:
You -"My email is down and I lost $$$ blah blah gimme gimme"
Google- "It's a free service.... what do you want?"
click.
They are the new Wal-Mart.
I love how this is a top story now. Must of been an important guy. Google is going to rapidly move into other areas in the future not just apples small corner of the market.
Unlike a certain other "big company" I can always leave Google's free service whenever I want. I'm forced by my employer to use said other companies product. So the Google situation is not even close. I'm sorry, but that's just fud.
Now look for Apple to announce a new version of OSX codenamed Barbarossa.
never in my life have I seen someone who is hated by an entire population like Paul is....
and speaking of which....Apple told Verizon that if they got the iPhone they couldn't control what apps were accepted and what were rejected. Why didn't they do that to AT&T.....??
@ben - excellent quip; you're my new hero!
@Orrett Junior - way less than 10% of readers comment here, so we don't actually know how the other 90% feel. Even in that less-than-10% there are quite a few people (including me) who do not hate Paul. Some hate him. Many dislike him. Some are ambivalent. Some think he is good for fun and or laughs. I imagine that one or two might even love him. But hated by an entire population? No, not even close.
google is one of the best companies because of schmidt
Aww why'd you guys change the pic?
Damn, that IS breaking news... Wonder if this means more enhancements for Google software now...
how do you explain the rejection of Google Latitude?
oh yeah, apple thinks its users are too stupid to differentiate it from Maps
as an iphone user, i hope google starts playing hardball. apple needs someone to knock them down a peg. in the long run, itll be good for apple.
Good shout - I think in the end it will be good for both of them.
Does anyone have an idea of who has the most money? It appears that Google is now "running" the internet like back in the day when all internet traffic seemed to go through Cisco.
My 2 pennies ...
At least he made the decision to leave the evil company and stay with the good one.
Um..."the good one?"
I can't if you're being sarcastic....damn internets
(aren't they both inherently evil?Both "for" profit company's)
Sorry let me rephrase:
At least he made the decision to leave the more evil company.
+1
Any 'for profit' company is evil? Where do you live, North Korea? How about you continue to do your job, whatever it is you might do for a living, but we'll just stop you from getting paid and take any possibility of a raise in salary or a bonus away. Like that too?
:cough: fanboy :cough:
I guess apple deserves this hit in the face! Their policies, alliances made sure that Eric feel he was in hostile territory. Apple even made demands on android, google could heed to the demands, but then, can't apple just return that favor? Boo! Apple!
What are you dribbling about?
I really dont mean to be an !@#hole (and I'm no apple fanboy or whatsoever), but...
WTH are you talking about!!? Hostile territory?! Of course Apple would feel threatened by Google's announcements, they are both competing at some of the same markets! (phone OS, web browsers and even OS). And not to mention that Eric WAS in the Apple's board of directors, that is like having someone listening to every single of your ideas.
This was meant to happen the sooner or later. And Apple is certainly not the evil one this time.
Look around. Google is the one turning evil, nobody else.
Very true Munir, very true.
AT&Ts response to Google Voice rejection:
""AT&T does not manage or approve applications for the App Store"
Which is also very true. Keep it up Apple and soon you will be faced with more issues than you know what to do with.
he went down to the sub-basement by accident and saw the devil there.
No, Paul, I'm sure there is some sort of contract or something binding Apple to using Google for maps and for Google to provide the maps for said number of years. Plus if Apple were to block maps then they would be left with no Map application at all, therefore upsetting most of the iPhones users and once again killing their market share. Apple wants things just the way they are and they are making sure it stays that way.
It will be good for google.
@Paul: There are already numerous apps on the app store that allow you to send SMS withOUT AT&T gaining anything from them at all. Why would AT&T block Google Voice apps but not those if they were worries about the SMS? Ever hear of Skype? Guess what it allows you to do? That's right, make phone calls without AT&T gaining anything at all. That's been in the app store for a while now, and AT&T didn't block that one. Of course, these apps do nothing to threaten Apple, unlike google voice...
So is Schmidt doing his Ballmer impression in that photo or something?
@DBrim
I think that shot was taken during his "Thriller" dance.
Told.
the only reason people are worried over Google is largely due to their bank. Google's like the jack of all trades king of nothing company. Other than the search arena, which they are falling at as well ever since bing came into existence. So.. its obvious that no company is gonna let a competitor sit on its board. this was expected. And I highly doubt anything had to do with the rejection of apps.. you guys create so much drama..
Yeah, totally failing at search... and those Google ads are doing just terrible...
http://marketshare.hitslink.com/search-engine-market-share.aspx?qprid=5
http://findarticles.com/p/articles/mi_m0EIN/is_2009_Jan_20/ai_n31202990/
@Andir3.0 - both those links point to pre-bing traffic.
@Scooby
Find one post Bing, Google is still leading.
The first one is a link to a rolling chart site for search engine market share. It has August data!
... sorry, July data.
Here's an article giving direct comparisons of advertisement dollars:
http://news.cnet.com/8301-10805_3-10286240-75.html
Bing's the one that's falling.
Oh here is one ridiculous back and forth. Bing has been around since June of this year - who the hell thinks it would (or could) have destroyed Google already?
Apple just shot itself in the foot, not because it can't do well without it, but rather because they have nothing to gain at all from pissing them off.
Nice and professional. Given the directions that Google is taking these days this was the sensible decision but I expect he will be missed.
Maybe it was Jobs who asked Schmidt to resign. Maybe Apple has products in the pipeline that compete with stuff offered by Google and it would be dumb to have a competitor sit at the board meetings -- just a thought.
Or, maybe Schmidt pissed of Jobs on some petty thing.
I'd put money on it that Schmidt took the decision to resign - you cannot be overseeing a company that is in competition with your own.
And the final straw is when Apple fucks over your company (reject google voice) while you sit on the board.
Paul your an idiot. It was Apple who owns the app store. They are the ones who setup the initial contract with ATT. They are the ones who should have said we own the store and we dictate what does and does not show up. Stop shoving your nose 6" up Steve's rectum and see that this is just another in a very long line of crap Apple policies. Apple = The new Microsoft. Deal with it.
Yes, Skype is on the App Store. And it works over 3G, right?
Oh wait, shit.
Paul is right. Apple is way too honorable to do such heinous things. ATT banned the app, not apple.
Google wanted a bigger role in the "trip a trois" and At&T said "too big, downsize" and Apple said "merde, can't do nothing", hence Google left.
@ Paul Chapel
Even if Apple had nothing to do with the rejection (which I doubt) how does that absolve them of responsibility? They still removed the app, ordered the developers to refund money and offered no straightforward explanations and it's their closed system that's to blame for corporations being able to effectively monitor and control the amount of competition they receive in the mobile market. It's sickening really the Apple/AT&T should be able to reject apps in the first place without a clear and PUBLIC structure of what they will/won't accept in their app store, because right now they're using their secretive policies to stop competitors coming into the market.
Good. I hope they decontaminate Eric before he goes back to Google. God forebid any part of Apple's **** policies make their way into Google. Apple is the new Microsoft just as evil as MS ever was. It will be a cold day in hell when I buy another Apple product...wait that sounds too like an Apple fanatic. OK lets say this. I won't touch another Apple product until they actually start Thinking Different again instead of thinking Big Business.....think IBM in the 80's. Its ironic that Steve was all kinds of anti-IBM in the 70-80's. Now look at him....think different indeed.
Mmmm
Good. Apple's antics are pissing me off like they did 20 years ago. Fool me once shame on you. Fool me twice shame on me. This 3GS is it... No more Apple products for me! I'm jumping ship as soon as AT&T gets a big screen Android phone.
"I'm jumping ship as soon as AT&T gets a big screen Android phone."
way to jump ship! att is just as much a bastard company as apple seems to be these days
For me: there us no other alternative. ATT provides the best service in my area with Verizon coming in second. Can't use Verizon because I can't get incoming calls while surfing the web waiting for my carpool partner to call me to let me know he's waiting outside.
Oh just let the first ARM A8 Cortex Android device ship. This 3GS will be found in the trash where it belongs.
Two things:
1) Does AT&T allow Google Voice on any other handset? If 'no' it's AT&T's fault. If 'yes' it's Apple's.
2) Wouldn't it be funny if Google pulled all their iPhone apps and functionality?
You do realize that AT&T make much more money off of data than they do voice...Right?
@Paul Chapel
Apple made the Maps app, using the same public Google Maps API's that anyone can use to make a related maps application. I'm pretty sure though there are other apps available that use Google Maps as well.
[robot greggo] ABOUT SCHMIDT [/robot greggo]
good.
Here goes Paul trying to twist words to try and make an argument again...
No, I am not going to acknowledge your link. I am not going to acknowledge your link to a portion of a screenshot which is titled "att-evil.png". That is proof of nothing, except for your idiocy of thinking you can use that as an argument. Ever hear of Photoshop? It's very good at creating things like that. If you want to provide proof, provide real proof. I don't care where your little picture came from, it makes no difference.
No, I never said Skype used SMS. I told you that there are apps on the app store that can reproduce SMS without AT&T gaining anything from them at all, which is true. Yes, Skype only uses Wi-Fi, but in all honesty, the areas where most people have iPhones are the areas where there is constantly Wi-Fi. The rural areas get crappy AT&T service anyways so most people around there won't have an iPhone. Plus what you stated was AT&T was afraid of long distance stuff. If I was calling overseas or was abroad, I would definitely search out a Wi-Fi hotspot to make a phone call using Skype before paying the insanely high rates that I would be charged by AT&T.
Paul, I don't think that Apple is 100% to blame for this, but you're being naive if you think this is all AT&T's fault. In a partnership like this all decisions are approved on some level by both parties. Taking into consideration Apple's past behaviour I tend to think that this was an equally shared decision by AT&T and Apple, but even if it wasn't, seeing how this Apple's app store, they do have a final say in what goes in and what doesn't. One way or another the decision to remove Google Voice from app store was approved and supported by Apple, whether it was done "with protest" or "with pleasure" is irrelevant. You may disagree with those crying out for Apple's blood, but don't blame it all on AT&T either - Apple is not an innocent party here.
I'm surprised it took this long. I'm sure he knew of Google's plans for OS and GV way before the public, did he think he'll be able to stay on Apple's board with such products coming out? He should've dumped Apple months ago and concentrated on Google... unless of course he stayed as long as he could to "spy" on Apple ;)
@Paul: "Well, hey, you want to ignore my evidence, so that sort of ends the conversation there. Any justification you use after is irrelevant. "
Are you really three or did puberty and maturity really just pass you by?
Google should just eat that apple and done with it...
apple's policies suck. AT&T or not. it finally boils down to apple rejecting a great app.
Unless, of course, AT&T has something in their contract with Apple that allows them to "blackball" an application that will have a detrimental impact on their network or ability to print money. I think that we can all agree that this is at least a possibility and hopefully something that the FCC investigation will confirm.
Yeah basically. You lost this argument and are now doing what you always do when you lose. You are now starting to pretend like you don't care and are resorting to immature, childish standards. I can't wait for school to start again so you'll be gone.
i've never seen a refund happen over IM...
Damn Paul, Monday morning and you're already hard at work? xD I agree that it was AT&T that pulled the plug on GV. That's not to imply that AT&T is pulling the strings all the time but in this case it's true. You don't have to take Paul and I's word for it you're all big boys and girls just do a google search "AT&T rejects Google Voice App" that should suffice.
This NEEDED to Happen! Both Apple AND ATT are Corrupt, Arrogant, SOuless companies that ALWAYS seem to stick it to its loyal customers. They don't appreciate or deserve any of the Attention that they get so Google is just coming to the same conclusion. They will take down Apple and I don't think Anybody will be too sad to see that Happen.
Apple is a JOKE. Plain and simple.
Tell me, is it mostly fairies or unicorns in your world?
Ahhhh Kelmon, the DEFINITIVE APple Troll. Well they can all go down just like their Precious Company is.
Ok Paul, I will acknowledge your links:
The first link is an image titled "att-evil.png". It is a portion of a screen shot of somebody supposedly talking with an Apple representative about the GV apps. Of course Apple is going to blame it on AT&T, that's a no brainer. This is not proof of anything and you can't use this as an argument. This is evidence of nothing at all. No one can even tell if this is real or not. This evidence is dismissed. This could have come from some Apple troll (possibly you) who wants everything Apple to be holy, hence the name "att-evil". The name alone completely kills all credibility.
The second link is the link to the sean kovacks site. If you'll notice, it is essentially a blog detailing all things to do with this whole debacle. You just so happened to choose the one main thing on there that points to the blame being on AT&T and not Apple. This one picture does not necessarily mean that Sean believes it is AT&Ts fault, if you scroll down there is many pieces of "evidence" pointing to it being Apple's fault. This does not provide any proof either. It's obvious you just took the one thing that made it appear to be AT&T and not Apple's fault and are now trying to throw it around to persuade people.
Your two links do not prove or provide any information at all. Your two links are useless.
Googe > Apple.
An iphone without google maps or gmail... now that would be pretty pathetic. Google will win this one.
Win what, precisely? Google as about as likely to withhold their Maps application from the iPhone as Microsoft are of pulling out of the EU - it's just not financially in their interest to do so.
@Paul: Kovacs wrote in his blog: "Richard Chipman from Apple just called—he told me they're removing GV Mobile from the App Store due to it duplicating features that the iPhone comes with (Dialer, SMS, etc). He didn't actually specify which features, although I assume the whole app in general."
I would love to see Google mount a hostile takeover of Apple....if even possible or does Jobs own controlling interest? Anyway it would be to the consumers advantage.
Again, Paul:
Kovacs wrote in his blog: "Richard Chipman from Apple just called—he told me they're removing GV Mobile from the App Store due to it duplicating features that the iPhone comes with (Dialer, SMS, etc). He didn't actually specify which features, although I assume the whole app in general."
If you'll notice, he never mentions anything about services. He is directly pointing out features of the iPhone.
I hope that Apple stops accepting google apps altogether .... Then Google will put more focus on Android and getting better apps on there Mobile OS. I agree with Minorthing4 an Iphone with no googs apps would be really lame.
You're not understanding Paul. The services for those are provided by AT&T. The actual way it is done on the phone is a feature of the iPhone, of which GV was reproducing and the very thing they are pointing out in the statement as the reason for its removal.
As much as I like this guy, I think it was only a matter of a time before he left Apple, due to the fact that it feels like they are / will be directly competing in (give or take) 3 or 4 years.
Anyone with any brain at all will tell you that what you provided is a joke and not evidence. What you provided is nothing at all. Again, a picture labeled "att-evil" is pure fanboism and refutes nothing. Take your crap elsewhere. Maybe had you chosen something without such a fanboish hate filled title it would be considered, but the name of that picture alone completely destroys it.
Splitting hairs is what you like to do. I know of cell phones that do not have SMS even as an option on the phone. By what you are saying that is because of the provider not providing it as a feature, which is not true. It is because the phone manufacturer left it out. A service is provided by the cellular provider, the feature is built into the phone. Hence the reason Apple always annouces things as "features". Remember the copy and paste "feature"? Are you saying it wasn't a feature before because AT&T didn't provide it?
Please do not turn this into a copy and paste argument, I was only using it as an example to prove my point to you.
I have as much evidence as you do. I have as much evidence as everybody else does in this case. You win nothing.
When does the "Google Maps on iPhone" shoving match begin? Who will Apple go to for their maps service on their iPhone? TomTom/TeleAtlas? You know there is another storm a'brewin'...
Why would Apple want to use someone else and why would Google want to give up the revenue that the iPhone generates for them? I don't see a switch coming unless someone comes up with a better mapping solution than Google.
Or iPhone developer has a blog covering all topics to do with the subject and posts a pic not necessarily from him but from some unknown source. I tend to go with that choice.
Apple has been bitching around too much recently
reminds me to mark the 21st of August on my calendar
Paul Chapel is easily 1/3 of the comments on this topic. That guy seriously has to die.
How can someone die if they have no life? CEOs wont even spend this much time defending their company. Engadget should really allow a sign on for frequent visitors where they can block people...
I lol'd.
No, that's because by this time this has gone on so long and people hate you so much that they don't care at all. They would rather scroll right by it all.
this is NOT good, google is the last company apple should have a strained relationship with